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Google Pay has partnered with banks and financial institutions in India to offer formal credit underwritten by accredited financial institutions to individuals and small businesses.

The mobile payment service aims to provide “responsible and reliable” formal credit to individuals and small businesses by collaborating with top lenders in India. The credit products offered on Google Pay will be underwritten by accredited financial institutions.

Additionally, Google is launching DigiKavach, an early threat detection system, in collaboration with The Fintech Association for Consumer Empowerment (FACE) to combat predatory digital lending apps and enhance online safety.

The early threat detection and warning system is designed to identify and study emerging financial fraud patterns before they cause widespread harm. It employs a collective approach to share insights and collaborate with experts to mitigate new scams, aiming to make the digital ecosystem safer.

FACE will provide market intelligence for swift action against non-compliant apps on Google Play Store in India.

“Reporting of hundreds of illegal lending apps by FACE has prevented lakhs of customers from falling prey. Google has taken commendable steps in this space and established a stringent policy framework to prevent bad actors. These collective efforts have helped mitigate user harm and reduce the number of predatory apps we’re seeing today,” Sugandh Saxena, CEO at FACE said.

Google has been facing ongoing criticism for its role in the proliferation of predatory lending apps in India. These apps are known for charging exorbitant interest rates and fees, and use aggressive collection tactics.